Vertex Pharmaceuticals' soaring shares rubbed off on the Nasdaq Biotechnology Index Tuesday, after studies showed the company's new combination of drugs to treat cystic fibrosis met the goals of two late-stage clinical trials.
It also had investors looking for the next breakout biotech stock.
UBS's Matt Roden, who called the Vertex news a great example of organic value creation in the biotech industry, likes Puma Biotechnology. The company has several upcoming events—including a breast cancer drug in the pipeline.
PBYI has a "potential favorable risk-reward based on the upside potential versus where it's trading," he told CNBC's "Power Lunch."
Although Vertex's stock spiked on Tuesday, Roden still believes there's still room to run.
"There are still levers to the upside organically," he said. "On top of that …. given that this is a very long-duration asset with very high margins, you can imagine that some strategic acquirers might be interested in coming along and taking a look."
—By CNBC's Michelle Fox. CNBC's Jennet Chin contributed to this report.
Disclosure: UBS owns Vertex Pharmaceuticals for clients. Puma Biotechnology is an investment banking client of UBS and Celgene is or within the past 12 months been an non-investment banking client.